Most people dread tax filing and payment deadlines and a number of them are unable to file and pay their dues, despite their best efforts. To make things easier for taxpayers, the IRS provides various tax relief options. If you owe a large amount to the IRS and do not know how to deal with the situation, we have got you covered. The IRS tax attorneys at the Law Offices of Nick Nemeth are specialized in dealing with all sorts of IRS tax-related issues and can help you find your way out of the trouble. Continuing on the subject, in this blog post, we discuss six IRS tax debt relief provisions you should know about to avoid penalties, interests and levies.
1. Offer in Compromise
If you owe the IRS an amount you can’t afford to pay due to your financial situation, it is advisable to apply for an Offer in Compromise. As the name suggests, an OIC gives taxpayers the opportunity to settle their tax debt in a smaller amount than they actually owe to the IRS. Taxpayers either make a short term payment or pay a lump sum for IRS tax relief.
2. Installment Agreement
An Installment Agreement offers a convenient way for taxpayers to pay their taxes, wherein they pay a fixed amount on a monthly basis. It is, however, important to do your research and check whether you qualify to apply for an installment agreement. We, at The Law Offices of Nick Nemeth, have a team of IRS tax professionals who can guide you in the right direction to get IRS tax debt relief.
3. Currently Not Collectible Status
Currently Not Collectible status refers to a situation wherein the IRS agrees to collect taxes after a certain period of time, if the taxpayer has no possible way to pay their taxes in full within the stipulated deadline. For the appeal to be accepted, the applicant must provide all the necessary documents to support their request and be completely transparent while sharing financial information.
4. File Bankruptcy
If, even with all the provisions offered by the IRS, a taxpayer is still unable to pay the amount owed to the IRS, they can file for bankruptcy. Bankruptcy can be filed under a number of chapters, with chapter 7 and 13 being most common. Discharge is subject to a good many rules. It is important to do your research on the long term impact of filing for bankruptcy and apply after checking the qualification criteria.
5. Stopping IRS Levy
Before the IRS decides to issue a levy, they send ample warnings and notices. It is, therefore, important to not avoid ignoring any notice from the IRS. Procrastinating action will only make the scenario worse. You can either apply for one of the many IRS tax relief options or pay the amount owed in full to stop the IRS from issuing a levy on your assets, such as bank account(s), property, vehicles, and other assets.
6. Innocent Spouse Tax Relief
If you file joint tax returns with your spouse and your spouse commits an error while filing a collective tax return, or improperly reports an item, you can be relieved of paying the interest by applying for Innocent Spouse Tax Relief. Technically, your spouse will be held responsible and would be asked to pay the penalty and/or interest to the IRS. The option, therefore, is usually exercised when the couple has separated.
Need IRS Tax Relief Help? Speak with a Tax Attorney!
Every IRS tax relief option has its own qualification criteria, specific application form, and required documents. Instead of doing it all on your own, it is advisable to seek IRS tax relief help from The Law Offices of Nick Nemeth. Our team of experienced IRS tax lawyers has the skills and knowledge to deal with all sorts of IRS tax related issues. To schedule a no-obligation free consultation, simply call (972) 426-2553 or fill our contact form and you will hear from us, soon.